--- title: "Cathay Securities | Banks: Time deposits are migrating to large banks, and the bond allocation efforts of small and medium-sized banks are decreasing — 202602 Credit Income and Expenditure Statement" type: "News" locale: "en" url: "https://longbridge.com/en/news/279629780.md" description: "The research report from Cathay Securities and Haitong Securities indicates that the credit income statement for February 2026 shows a trend of both corporate and personal time deposits migrating to large banks. Small and medium-sized banks are facing increased pressure to attract deposits, and the intensity of bond allocation is weakening. Corporate time deposits decreased by 3.2 trillion yuan year-on-year, while personal time savings deposits increased by 2.5 trillion yuan year-on-year. The net inflow of deposits for large banks was 1.8 trillion yuan, while small and medium-sized banks experienced a net decrease of 118.4 billion yuan. The outflow of deposits from small and medium-sized banks will need further observation in the future" datetime: "2026-03-18T15:10:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279629780.md) - [en](https://longbridge.com/en/news/279629780.md) - [zh-HK](https://longbridge.com/zh-HK/news/279629780.md) --- # Cathay Securities | Banks: Time deposits are migrating to large banks, and the bond allocation efforts of small and medium-sized banks are decreasing — 202602 Credit Income and Expenditure Statement Report Overview: February Credit Income and Expenditure Statement: Both corporate time deposits and personal time savings deposits show a trend of migration from small and medium-sized banks to large banks, increasing the deposit pressure on small and medium-sized banks, and the bond allocation intensity is marginally slowing down. Liabilities: Time deposits migrating from small and medium-sized banks to large banks 1. Corporate Deposits: A year-on-year decrease of 3.2 trillion yuan. By type, demand deposits decreased by 2.1 trillion yuan year-on-year, likely mainly due to the misalignment effects of the Spring Festival month; time deposits increased by 89.5 billion yuan year-on-year, with large banks and small and medium-sized banks increasing by 253.1 billion yuan and decreasing by 163.6 billion yuan year-on-year, respectively, indicating a flow of corporate time deposits from small and medium-sized banks to large banks. 2. Personal Deposits: A year-on-year increase of 2.5 trillion yuan, with demand savings deposits and time savings deposits increasing by 2.7 trillion yuan and decreasing by 303.7 billion yuan year-on-year, respectively. The trend of time savings deposits migrating from small and medium-sized banks to large banks continues, with large banks and small and medium-sized banks increasing by 165.2 billion yuan and decreasing by 468.9 billion yuan year-on-year in February. 3. Non-bank Deposits: A year-on-year decrease of 1.3 trillion yuan, with large banks and small and medium-sized banks decreasing by 695.3 billion yuan and 613.7 billion yuan year-on-year, respectively. 4. Financial Bonds: A year-on-year decrease of 333.7 billion yuan, with large banks and small and medium-sized banks decreasing by 108.8 billion yuan and 224.9 billion yuan year-on-year, respectively. From the changes in the deposit structure of various types of banks: 1. Large Banks: A net inflow of deposits of 1.8 trillion yuan in a single month, a year-on-year decrease of 369 billion yuan, with personal deposits, corporate deposits, and non-bank deposits net increasing by 1.5 trillion yuan, decreasing by 1.2 trillion yuan, and increasing by 1.3 trillion yuan, respectively, accounting for 55.5%, 31.7%, and 12.4% of the deposit stock structure, with changes of +0.3pct, -1.1pct, and +0.7pct compared to the previous month. 2. Small and Medium-sized Banks: A net decrease of deposits of 118.4 billion yuan in a single month, a year-on-year decrease of 1.9 trillion yuan. Historical data shows that small and medium-sized banks have also experienced net outflows of deposits in a single month, such as a net decrease of 301.3 billion yuan in April 2025 and a net decrease of 326.2 billion yuan in July 2024. The future net outflow of deposits from small and medium-sized banks remains to be observed. Personal deposits, corporate deposits, and non-bank deposits net increased by 1.5 trillion yuan, decreased by 1.9 trillion yuan, and increased by 171.5 billion yuan, respectively, accounting for 50.7%, 36.8%, and 12.0% of the deposit stock structure, with changes of +1.0pct, -1.2pct, and +0.1pct compared to the previous month. Assets: Significant decrease in bill financing for large banks, reduction in bond allocation for small and medium-sized banks 1. Loans: A year-on-year decrease of 136.2 billion yuan, with large banks and small and medium-sized banks decreasing by 95.9 billion yuan and 40.3 billion yuan year-on-year, respectively. By type, short-term loans, medium to long-term loans, and bill financing decreased by 215.2 billion yuan, increased by 311.6 billion yuan, and decreased by 230 billion yuan year-on-year, respectively. In February, bill discounting continued to decline, with large banks showing a more significant reduction; in February, large banks and small and medium-sized banks decreased their bill discounting by 197.4 billion yuan and 32.6 billion yuan year-on-year, respectively 2) Bond Investment: Year-on-year increase decreased by 276.9 billion yuan, with large banks increasing by 415.5 billion yuan and small and medium-sized banks decreasing by 692.4 billion yuan year-on-year. Under the increased pressure on deposit collection for small and medium-sized banks, the bond allocation intensity has marginally slowed down. Investment Suggestions: In 2026, the investment focus for the banking sector should grasp three main lines: 1) Look for targets with expected performance growth or sustained high growth; 2) Pay attention to banks with expectations of convertible bonds converting into stocks; 3) The dividend strategy is still expected to continue. Risk Warning: Economic recovery is less than expected; bank asset quality deteriorates beyond expectations. Source of Report The above content is excerpted from the securities research report published by Guotai Junan Securities. Report Name: Migration of fixed deposits to large banks, decrease in bond allocation intensity of small and medium-sized banks — 202602 Credit Income and Expenditure Table; Report Date: 2026.03.18 Report Authors: Ma Tingting (Analyst), Registration Number: S0880525100001 Chen Huiqin (Analyst), Registration Number: S0880525100003 Important Reminder The content contained in this subscription account is only for clients who have signed up for Guotai Junan Securities research services. Since this material cannot currently set access restrictions, according to the requirements of the "Securities and Futures Investor Suitability Management Measures," if you are not a signed client of Guotai Junan Securities research services, in order to ensure service quality and control investment risks, please unsubscribe and do not subscribe to, receive, or use any information in this subscription account. 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